Rodrigo Buenaventura, president of the National Securities Market Commission (CNMV) in Spain, during an intervention before the Committee on Economic Affairs and Digital Transformation of the Congress of Deputies, expressed his different point of view regarding the position of the Bank of Spain, which has repeatedly pointed to cryptocurrencies as a systematic risk to the system financial.
According to what was reported by the newspaper El Confidencial, from the CNMV, the president expressed his difference with the position of the Bank of Spain and He also said that the small systemic dimension of these assets does not mean that it is not a concern from the perspective of protecting the retail investor.
Also during his appearance, Buenaventura also said that the crypto phenomenon is complex, and excessive simplifications should be avoided, since in his opinion it has a technology dimension, “certainly exciting”commented.
Investors are looking for quick profits
On the other hand, Buenaventura referred to the “investor fashion“, stating that it does not have much to do with the future role of cryptocurrencies as private money, but mainly with an expectation of quick profits. “And unfortunately many of these hot assets are not assets; they do not contain rights or are backed by other assets or contractually offer future returns. Their future price basically depends on the broadening of the investor base; on the continuous entry of more investors”he pointed out.
“Many times in the history of financial spirals and bubbles, and we know more or less how it ends: the minority that got in early and get out on time make a lot of money, and the majority that get in late lose almost everything.”he added.
“The disappearance of one or several currencies will undoubtedly be painful for those who bought them, but I doubt very much that it would produce anything resembling an international financial crisis”he mentioned.
Finally, Buenaventura insisted that a regulation is needed that establishes the requirements that must be met by companies that issue, distribute, guard or trade crypto assets. According to what was reported by El Cofidencial, this regulation would already be almost finalized at the political level in Europe and is called MiCA (Markets in Cryptoassets Regulation).
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Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.